Analysis of the Reasons for the Recent Crypto Assets Market Pullback

Recently, the Crypto Assets market has undergone a significant correction, mainly for two reasons:

Micro Level: Continuous Financial Losses Raise Concerns

The recent series of large-scale fund theft incidents has had a negative impact on traditional investors. The outflow of funds from the BTC ETF indicates that these events have raised concerns among investors, triggering this round of pullback.

For platforms that have been attacked, significant financial losses will put great pressure on their business expansion and operations. While some of the losses may be recoverable, the associated legal processes can be lengthy. These incidents have also raised concerns about the adequacy of the legal framework in the Crypto Assets industry.

Macroscopic Level: Great Power Game and Liquidity Migration

From a macro perspective, there are several main factors:

1. The issue of the U.S. fiscal deficit continues.

2. DeepSeek's open source achievements impact the valuation of the US AI sector

3. China's risk assets enter the revaluation phase

4. The trend of the US dollar is uncertain.

These factors combined have led to a global migration of liquidity, putting certain pressure on the Crypto Assets market.

Market Outlook

In the short term, there are many uncertain factors. Investors may consider adopting a barbell strategy, allocating blue-chip crypto assets on one side and positioning small amounts in high-volatility assets on the other side. Overall, there are currently no obvious structural risks. If the market experiences a panic sell-off, it may present an opportunity to build positions.